SHARI’AH-COMPLIANT firms listed at the Philippine Stock Exchange, Inc. (PSE) have jumped to 60 from 58 following the market operator’s quarterly screening for the period ending Sept. 25.
The PSE issued a memorandum on Oct. 4, which showed that three issues were included while one issue was removed from the list of securities deemed compliant with Shari’ah standards.
Based on the latest report, the additions to the Shari’ah-compliant list were property developer Araneta Properties, Inc., education firm iPeople, Inc., and mining company United Paragon Mining Corp., while energy firm SPC Power Corp. was removed.
The market operator issued the previous list on July 5, which covered the period ending June 25.
Shari’ah refers to “the moral code and religious law of Islam covering the rules, regulations, teachings, and values that govern the lives of Muslims,” the PSE said.
“Shari’ah-compliant investment instruments create a mechanism for listed companies to gain access to potential funding from Islamic investors including those in countries in the Middle East and other countries with high Islam population such as Malaysia and Indonesia,” the PSE said on its website.
The listed companies were screened by IdealRatings, Inc. in accordance with the standards for Shari’ah compliance as provided by the Accounting and Auditing Organization for Islamic Financial Institutions.
IdealRatings is a provider of Islamic finance information engaged in screening securities for Shari’ah compliance.
The PSE releases the list of securities that are Shari’ah compliant on a quarterly basis. The initiative seeks to provide more investment opportunities for Muslims locally and across the world, as well as expand the investor base of the local stock market.
“The adoption of Shari’ah in the capital market will help foster an ethical investment climate that provides opportunities for local Islamic investors to comfortably participate in the Philippine business community,” the PSE said.
“Due to the ethical stance of putting premium on compliance to Islamic laws over profitability, Islamic investors can better gauge the risks involved in their investments,” it added. — Revin Mikhael D. Ochave